Rackspace Lenders Tap Legal Counsel as a Preventive Measure

Some of Rackspace Technology Inc.’s lenders have retained Gibson Dunn & Crutcher LLP as legal counsel in an effort to maintain a united front in the event the company pursues a debt restructuring, according to people with knowledge of the situation.

In a preventive move, the first-lien lender group has signed a cooperation agreement that binds them to act together in potential negotiations, the people said, who asked not to be identified because the matter is private.

“Rackspace Technology is in full compliance with all our debt facilities, continues to make all required interest and principal payments on schedule ...